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The holiday season is a time for gathering, generosity, and gift-giving, but it can be tough to shower your loved ones with affection while on a budget.

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Maybe that’s why 7 out of 10 Americans say they usually spend more during the holidays, as a Affirm. Recent Consumer Spending Reports from, a Buy Now, Pay Later Financing company.

Nearly half of consumers (48%) plan to spend more money for missed celebrations this holiday season in 2020 due to the coronavirus pandemic. Despite rising costs, buyers have made staying on budget their top priority.

Thankfully, you don’t have to choose between an unforgettable holiday season and sticking to your budget. keep reading for tips how to avoid overspending Learn more about how you can make the most of your shopping budget using a rewards credit card during the holidays.

You can do this Compare Cashback Credit Card Offers Down below without affecting your credit score.

How many credit cards should you have?

Holiday shopping tips to help you avoid overspending

The holiday season brings with it a lot of pressure to spend money, which can affect your finances. As Affirm reports, more than half of Americans say they worry about holiday shopping.

Here are some tips for responsible vacation spending:

And if you’re still struggling to pay off last year’s vacation debt, consider credit card consolidation, below.

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Create a Realistic and Inclusive Vacation Budget

While dropping a few hundred dollars around for holiday shopping may not seem like a huge financial commitment, it can add up to thousands before you know it. Here are some tips to make sure you’re setting an accurate budget:

  • Analyze last year’s vacation expenses. Use the Free Budget App View your bank statements And determine where you went last season, so you don’t make the same mistakes again. You may find that you spent a lot more money than you thought.
  • Set spending limits with family gifting. For example, you and your siblings can commit to spending no more than $50 on nieces and nephews. Besides making budgeting more intuitive, it can also help ensure that no sentiment is hurt.
  • Factor in the cost of holiday meals. To keep costs down, turn your traditional Christmas dinner into a potluck. If your loved ones don’t cook, consider asking them. handle some grocery shopping. And skip the single-use table settings for an elegant (and more cost-effective) celebration.

It may sound like a common-sense rule, but sticking to a budget is a surefire way to avoid overspending during the holiday shopping season.

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Start shopping early, and beware of shopping holidays

Ideally, you should be saving up throughout the year to do your holiday shopping, so you don’t Throwing away your December budget from hundreds of dollars.

But the holidays have a way of sneaking up on you—before you know it, local artisans have set up shop at the city’s holiday markets. Brick-and-mortar department stores are adorned with dazzling decorations and delicate glass ornaments. By now, it may be too late to buy even this season’s hottest toys, jewelry, and other trendy merchandise.

an easy way to spread the cost of vacation Start your shopping early. Instead of spending $600 in the month of December alone, you can spend $200 a month on holiday shopping starting in October. In fact, the majority (61%) of consumers surveyed by Affirm said they don’t wait for Black Friday and Cyber ​​Monday to start shopping for gifts.

And think twice before taking out your credit or debit card on one of these popular shopping holidays. Often, the deals advertised are not as competitive as they might seem. Instead, use online price tracking tools to monitor changes in the cost of big-ticket items like electronics and smartphones. Bottom line: Do your research to avoid going into debt for the “perfect gift.”

Borrowers who consolidated credit card debt saved an average of $2K+, data shows

Use Rewards Credit Card with Cashback

Can offer select credit card users Up to 5% cashback on certain purchases, which is an easy way to get rewarded for the money you’re already spending. Plus, some issuers let you apply your cash rewards to your statement balance, which reduces the overall cost of borrowing.

But credit cards can be a gateway to overspending during the holiday season if you’re not careful. That’s why it’s important that you only spend what you’d pay in cash, and pay off the entire statement balance each month to avoid high interest charges and charges.

Also note that most reward credit cards Applicants are required to have a good credit history.

If you stick to your budget and don’t charge more than you can pay, you can get a . may be able to use rewards credit card To meet your holiday budget. You can do this Compare offers on multiple rewards credit cards On Credible’s online marketplace.

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Bonus: Consolidate Credit Card Debt With Personal Loans

Holiday overspending can lead to costly long-term debt. One of the biggest holiday stressors among US consumers taking on more debt than they can pay, as confirmed.

If you’re still struggling to pay off last year’s holiday shopping bill, now might be a great time to come up with a debt payment plan. One popular way to get out of credit card debt is to open a personal loan.

unsecured personal loan Lump sum loans are those that you repay in fixed monthly payments over a specified period. Because they do not come with variable interest rates and minimum payments like credit cards, personal loans offer a more structured loan repayment plan.

Compared to credit cards, personal loans also offer lower interest rates. The average personal loan rate in Q2 2021 was 9.58%, Per Federal Reserve data, compared to 16.30% for assessed interest for credit card accounts. So, you may be able to Save money on interest charges over time By refinancing your credit card debt with a personal loan.

You can do this View your estimated personal loan rate Without affecting your credit score on Credible. Then, a. use personal loan payment calculator Here’s how to determine if credit card debt consolidation fits your budget.

Personal Loan Vs. Credit Cards – When to Use Each

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